Fields Company purchased equipment on January 1 for 180,000 This system has a useful life of 8 years and a salvage value of 20,000 The company estimates that the equipment will produce 40,000 units over its 8-year useful life Actual units produced are: Year 1 - 4,000 units;Year 2-6 ,000 units; Year 3-8,000 units; Year 4-5,000 units; Year 5 -4,000 units; Year 6-5,000 units; Year 7 -7,000 units; Year 8 - 3 ,000 units. What would be the depreciation expense for the second year of its useful life using the units-of-production method? 16,000 45,000 33,750 24,000 20,000

To calculate the depreciation expense using the units-of-production method, we first need to determine the depreciation cost per unit. The formula for this is: Given:- Cost of Equipment = - Total Estimated Units = 40,000 unitsSubstitute these values into the formula: The depreciation cost per unit is Therefore, the depreciation expense for the second year using the units-of-production method is .